The new maximum work loss rate an auto accident victim can recover is $5,398 per month
What will be the most that a Michigan auto accident victim can receive in monthly No Fault auto insurance wage loss benefits for 2015-16?
The monthly max for No Fault wage loss between October 1, 2015, through September 30, 2016, will be $5,398.
That’s according to the Michigan Department of Insurance and Financial Services (DIFS)’s recently released Bulletin 2015-20-INS, entitled “Annual Adjustment of the Maximum Work Loss Benefit Payable under Policies of Personal Protection Insurance.”
Although not by much, the monthly No Fault wage loss max will increase by $6 from the 2014-15 amount.
How do No Fault wage loss benefits work?
As an attorney who has devoted my nearly 20-year legal career to helping people injured in Michigan automobile accidents, I’ve seen the important and vital protections afforded by Michigan No Fault wage loss benefits.
Here’s how wage loss works if you’ve been injured in a crash in Michigan:
- How much: If a person suffers auto-accident-related injuries that prevent him or her from returning to work, then No Fault wage loss benefits will pay up to 85% of the “income from work” the “injured person” would have earned “if he or she had not been injured.” (MCL 500.3107(1)(b))
- Who pays: They’re paid by a person’s auto insurance company and they’re paid “without regard to fault,” i.e., regardless of whether the person was at-fault in causing the accident that resulted in the injuries disabling the person from working. (MCL 500.3105(1) and (2))
- How long: Wage loss benefits will be paid “during the first 3 years after the date of the accident” and they’re capped at an monthly “maximum” amount (which is stated above) that’s “adjusted annually” to “reflect changes in the cost of living … but any change in the maximum shall apply only to benefits arising out of accidents occurring subsequent to the date of change in the maximum.” (MCL 500.3107(1)(b))
Here’s more information about applying for wage loss benefits, how wage loss benefits are calculated and what the requirements are for collecting “excess” wage loss benefits.